Updated October 4, 2026. Quick answer: No state deduction, because Tennessee has no personal income tax to reduce. The Department of Revenue says the Hall income tax was “repealed for tax periods that begin on January 1, 2021”, and that it was “imposed only on individuals and other entities receiving interest”.
What Tennessee allows for 529 contributions
| Item | What the documents say |
|---|---|
| Treatment | Not applicable: no personal income tax |
| Limit | None |
| Source | Tennessee Department of Revenue, Hall income tax page |
A $10,000 contribution by a married couple
A married couple who put $10,000 into a 529 account for one child deducts $0 on a Tennessee return, because there is no Tennessee personal income tax return to deduct it on.
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What the documents do not say
- The Department’s pages that state the absence of a wage income tax outright could not be retrieved; this page rests on the Hall income tax page.
What changes in 2026
No change for tax year 2026 appears in the documents read for this page.
Federal rules
A state break sits beside the federal rules for 529 plans: the statute is 26 U.S.C. 529 and the IRS explains it in Publication 970, Tax Benefits for Education.
Common mistakes
- Looking for a Tennessee deduction form; the Hall income tax that once existed is repealed.
Related: how Tennessee taxes retirement income, whether Tennessee taxes pensions, the five questions behind any 529 state tax break, and the state-by-state table of 529 deductions.
Sources
- Hall Income Tax: https://www.tn.gov/revenue/taxes/hall-income-tax.html
Sources: the primary documents linked above, read on October 4, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer, the plan administrator or the agency itself is the right place to confirm anything consequential.